NOTE 4 — Disposition of Business

On May 22, 2015, we completed the sale of our 62.4% ownership stake in eLong, Inc., which was a separate reportable segment, for approximately $671 million (or $666 million net of costs to sell and other transaction expenses) to several purchasers, including Ctrip.com International, Ltd. Of the total sales price, approximately $67 million was remitted directly to escrow for estimated tax obligations, and represented a noncash item in our consolidated statement of cash flows for 2015. In November 2016, we received the escrow deposit, which was included as an investing inflow in our consolidated statement of cash flows for 2016. As a result of the sale, we recognized a pre-tax gain of $509 million ($395 million after tax) during 2015 included in gain on sale of business in our consolidated statement of operations.

The following table presents the carrying amounts of our eLong business immediately preceding the disposition on May 22, 2015, in thousands:



Total current assets⁽¹⁾	$	350,196
Total long-term assets	137,709
Total assets divested	$	487,905
Total current liabilities	$	187,296
Total long-term liabilities	5,782
Total liabilities divested	$	193,078
Components of accumulated other comprehensive income divested	45,259
Non-redeemable non-controlling interest divested	92,550
Net carrying value divested	$	157,018

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(1)	Includes cash and cash equivalents of approximately $74 million.

We evaluated the disposition of eLong and determined it did not meet the “major effect” criteria for classification as a discontinued operation largely due to how recently it began having material impacts to our quarterly consolidated operating and net income at the time of the determination. However, we determined that the disposition did represent an individually significant component of our business. The following table presents certain amounts related to eLong in our consolidated results of operations for the year ended December 31, 2015 through its disposal on May 22, 2015, in thousands:



Operating loss⁽¹⁾	$	(85,536	)
Income before taxes⁽²⁾	438,843
Income before taxes attributable to Expedia, Inc.⁽²⁾	465,400
Net income attributable to Expedia, Inc.⁽³⁾	349,183

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(1)	Includes stock-based compensation and amortization of intangible assets of approximately $20 million, which was included within Corporate & Eliminations in NOTE 19 — Segment Information.


(2)	Includes the pre-tax gain of $509 million related to the gain on sale.


(3)	Includes the after-tax gain of $395 million related to the gain on sale.